Clover Health Investments (NASDAQ:CLOV – Get Free Report) and NeueHealth (NYSE:NEUE – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Clover Health Investments and NeueHealth, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clover Health Investments | 0 | 1 | 0 | 0 | 2.00 |
| NeueHealth | 0 | 1 | 0 | 0 | 2.00 |
Clover Health Investments presently has a consensus target price of $1.50, indicating a potential upside of 50.00%. NeueHealth has a consensus target price of $8.00, indicating a potential upside of 34.45%. Given Clover Health Investments’ higher possible upside, equities research analysts plainly believe Clover Health Investments is more favorable than NeueHealth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clover Health Investments | $2.06 billion | 0.24 | -$213.36 million | ($0.34) | -2.94 |
| NeueHealth | $1.16 billion | 0.04 | -$1.15 billion | ($130.73) | -0.05 |
Clover Health Investments has higher revenue and earnings than NeueHealth. Clover Health Investments is trading at a lower price-to-earnings ratio than NeueHealth, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Clover Health Investments has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, NeueHealth has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.
Profitability
This table compares Clover Health Investments and NeueHealth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clover Health Investments | -8.63% | -48.07% | -16.63% |
| NeueHealth | -89.78% | -5.62% | 2.57% |
Institutional and Insider Ownership
19.8% of Clover Health Investments shares are owned by institutional investors. Comparatively, 63.9% of NeueHealth shares are owned by institutional investors. 22.3% of Clover Health Investments shares are owned by company insiders. Comparatively, 64.3% of NeueHealth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Clover Health Investments beats NeueHealth on 7 of the 12 factors compared between the two stocks.
About Clover Health Investments
Clover Health Investments, Corp. provides medicare advantage plans in the United States. It operates through two segments: Insurance and Non-Insurance. It also offers Clover Assistant, a cloud-based software platform, that enables physicians to detect, identify, and manage chronic diseases earlier; and access to data-driven and personalized insights for the patients they treat. Clover Health Investments, Corp. was incorporated in 2014 and is based in Franklin, Tennessee.
About NeueHealth
NeueHealth, Inc., a healthcare company, provides various healthcare services for health consumers, providers, and payors in the United States. It operates through two segments: NeueCare and NeueSolutions. The NeueCare segment delivers healthcare services to ACA marketplace, medicare, and medicaid through owned and affiliated clinics. It operates risk-bearing clinics under the Centrum Health, AssociatesMD, and Premier Medical Associates brand names. The company also offers integrated system care solution, such as embedded pharmacy, laboratory, radiology, and population health focused specialty services; and chronic care management, transitions of care, and referral management services. The NeueSolutions segment enables providers and medical groups to succeed in performance-based arrangements; and participates in the centers for healthcare access to medicare beneficiaries. The company was formerly known as Bright Health Group, Inc. and changed its name to NeueHealth, Inc. in January 2024. NeueHealth, Inc. was incorporated in 2015 and is headquartered in Doral, Florida.
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